I know very little about economics (“the dismal science”). That will, perhaps, become very clear as you keep reading.
This is what’s on my mind: We are being told (and I have no reason to doubt it) that the economy will not recover unless people start spending more money. Lots more money.
This bothers me. There are people I know who are in credit card debt up to their hubcaps. They are in trouble (financially, relationally, emotionally) because they pursued the American Dream…and spent money–as advocated by presidents, both Republican and Democrat.
Okay, I think I know what you’re thinking: Nobody said to borrow money, just spend it.
Now wait a minute. Yes, borrowing money is frowned on the Bible. Not forbidden outright, but not considered a good idea. Foolish. Dangerous.
So what would happen to the economy if people who profess that the Bible is their sole rule for faith and life did not borrow money unless absolutely necessary?
The economy (as it now exists) would collapse. Totally.
What do you think the new economy (world, for that matter) would look like? Please leave a comment and let me know what you think.
You have a great undestanding of the current fractional reserve system. Yes, the Bible does frown on debt as foolish. But, our whole society is based on what the Bible calls foolish. Interesting, huh? So, to our current economic philosophy, the Bible and its teachings could be considered a threat to its existence. If Christians actually did what the Bible suggested it would mean a lot of people not spending more than they earn, which is normal for Americans/Christians, which would prolong “the greatest economic downturn since the great depression”.
To answer the question, in the short term the economy would be mass anarchy and pain. Going from a 9:1 fractional reserve ratio for the past 40 years to a 1:1 fractional reserve ratio would create massive problems that I can’t even fathom.
In the long term a sustainable economy.
Great comment. Thank you!
I was reminded by your words of the great missionary statesman Leslie Newbigin’s statement (I’m paraphrasing), the Gospel calls into questions EVERY political, economic, and social system under the sun.
Interesting thoughts. Bekah and I had a similar discussion the other day when we chewed on what a truly Biblical take on the current economic situation might look like. An excellent suggestion of hers was that a Biblical scenario would be to declare a year of Jubilee, considering all debts paid, all land reverting to its original owners.
I told her I thought she might be on the right track, that surely God would smile on such an act, that it would probably also (in the long run) heal our economy and return it to something sustainable. Unfortunately, nothing even approaching that would ever be considered politically viable.
We live in an instant society. “I want it now”!(I’ve been guilty of that too) Here in America, (especially in corporate america), that is so true when it comes to financial returns. Looking for quick returns no matter the human cost, is becoming more and more prevelant. Our government is having to bail out big business. Again, only a quick fix that drives us more into debt as a nation. As Christians most of us do understand that everything in this world belongs to God. And at the same time, “The love of money is the root of all evil”. Hard times have a way of bringing people to God, and Jesus’ saving grace. I do find comfort in knowing that nothing happens on earth without my heavenly Father allowing. So my trust is in him, and not our economy.
A key thing to note is that the bible does not forbid the borrowing of money, only suggests caution and warns that it could be a pit fall. A world that doesn’t require the borrowing of money is a nice thought, until you remember that credit is more than just your credit card. It is your mortgage and your child’s student loans. It is the opportunity for entrepreneurs and anybody who can see the bigger picture. One only needs to look to India and Bangladesh to see the difference the borrowing of money makes in our lives. The microloan movement has pulled millions (more?) out of poverty and starvation.
I fully agree that access to credit has led many members of the western society down a path of self destruction, but in the end of the day, most of them (though I realize not all) have a roof over their head when they go to sleep at night.
I guess my point is that we should not charge ourselves with imagining what the world would be like if God had just got that one little thing right and actually forbade the borrowing of money instead to simply warning that it can be hazardous